Is Wholesaling Dead in the Current Market?

[Deborah Mettler]

I looked first before starting this topic but didn't see any threads.
There are alot of good deals out there right now, but wondering if "wholesaling" is dead right now..are investors still buying good wholesale deals from other investors?

An active wholesaler in my area has commented they are having a very difficult time finding investors for their wholesale deals and are now "holding" more instead of selling.

Would appreciate any input from active wholesalers in this forum as to what you are encountering in todays market and if you have had to change your strategy.

[Ryan Webber]

As long as there is buying and selling going on, there is opportunity for wholesaling.

Yes, financing for EVERYONE has gotten tighter.
Yes, cash or cash equivalent buyers are harder to come by.
And even with these being true, YES, you can still wholesale in ANY market that people are still buying and selling in.

I will GUARANTEE you that there is a price that a cash buyer will buy 95% of the houses in your town for. IF its low enough. The trick is finding out how low that price has to be. Maybe its 70% of ARV, maybe its 60%, maybe its 50%, I don't know, maybe its 20% of ARV in your city, but there IS a price that cash buyers will buy at for 95% of homes in most cities over 100,000 people.

Take that fact with the fact that over 30% of ALL homes have absolutely NO mortgage. And then take those two facts and combine them with the fact that the current economy has created a higher percentage of motivated sellers than our industry has seen since the Great Depression, and what you get is that there is an incredible opportunity for wholesaling right now.

There are still buyers in California. There are still buyers in Michigan. There are still buyers in Florida. There are still buyers in Arizona. The ABSOLUTE worst markets STILL have cash buyers buying in them RIGHT NOW. They are just buying for significantly lower prices than they were 5 years ago.

Here is the secret to wholesaling. This single principle encompasses what wholesaling is all about and why it works. This principle IS wholesaling. This principle is how I have wholesaled hundreds of houses and continue to wholesale houses EVEN in our current economy.

Are you ready?

Here it is. . .

Price overcomes all objections.

No, no wait. I know you've heard it before but read it again. Read it like its an ABSOLUTE TRUTH of this business. Read it like you can completely trust it. Like you can stake your entire life earnings on it.

PRICE OVERCOMES ALL OBJECTIONS.

Well you say, "There's less buyers in the market. I don't know if wholesaling will still work."

I say, "Price overcomes all objections."

You say,"I have a GREEEAAATTT wholesale deal that's not selling. I think wholesaling is dead."

I say, "Price overcomes all objections. Lower the price enough and you will sell it."

If you are selling a house and you are selling it for a low enough price (AND you are adequately marketing it), you WILL sell it.

You WILL sell it because PRICE OVERCOMES ALL OBJECTIONS.

Now in reality, this is NOT an absolute truth of this business. Price overcomes MOST objections. The one exception is when a property has a negative value (meaning they have to pay YOU to buy it).

Let's say you have a house with a $40,000 ARV but it needs $40,000 in work to get there. The only way you are going to buy it is to get the seller to pay you for it. In my experience, less than 2% of houses outside of war zones have a negative value, so you won't run into often but it does happen.

Other than that exception, always remember . . .

Price overcomes all objections.

That's what wholesaling lives and breathes on, and as a wholesaler you need to understand this truth intimately or you won't stay in business long.